What Is Salary Benchmarking?

Compensation levels are a basic framework established on the basis of the results of post value evaluations. It classifies positions with similar post values into the same management level and adopts a consistent management approach to pay management issues within that level. The considerations for salary classification include: corporate culture, the industry to which the company belongs, the number of employees, the stage of corporate development, and the organizational structure of the enterprise.

Pay scale

Compensation levels are established based on the results of post value evaluations. It classifies positions with similar post values into the same management level and adopts a consistent management approach to pay management issues within that level. Pay scale is a basic framework

The considerations for salary classification include: corporate culture, industry to which the company belongs, number of employees, company

The types of salary levels can be divided according to standards such as work, ability, and comprehensive structure:

Ability compensation system

(1) Technical grade system: A salary grade that divides employee grades and salary levels accordingly according to the technical complexity and labor proficiency of the employees. The differences in levels shown by the technical hierarchy are reflected in the technical level and the payroll.

(2) Ability and qualification system: Refers to a salary system that is graded according to ability and qualification. A more typical representative is the annual merit system, that is, the salary level is determined according to the length of service of an employee and the amount of salary calculated by the corresponding length of service.

(1) The results of the job evaluation can be in the form of points, grades, or rankings.

(2) The correspondence relationship can be either a linear relationship or a non-linear relationship.

1. Decide whether positions are divided into pay levels by series

(1) Regardless of the series: the evaluation results of different series of posts need to be linked together; one position should be found in each of the two series, and the evaluation results of the two positions should be the same or similar, and then the different series Unified sorting of posts

(2) Sub-series: Sort by post evaluation results

2. Division of salary

Will be

There are usually three basic design ideas or salary benchmarks for determining the salary level structure:

Based on

Enterprise and

How to design a scientific, reasonable and systematic compensation system to achieve distribution according to work, more work and more fairness and justice? When designing the compensation system, the HR compensation manager should pay attention to the following eight details:

1. Pay attention to the reasonable pay structure

The composition of the salary system generally consists of basic salary, position salary, performance salary, seniority, overtime salary, bonus and so on. In particular, the ratio of basic salary, position salary, and performance salary should be reasonable. Basic salary is generally universal for enterprises, which meets the local minimum wage level and reflects the rigidity of salary; while position salary is analyzed based on job analysis of different positions. The value of the post, make a scientific and accurate job evaluation to reflect the salary level of the post, to meet the internal salary balance of employees, performance salary is based on the achievement of performance results to determine the amount of performance salary, employees at different levels in the enterprise, performance salary The proportion of total salary is different. The senior level generally accounts for 40-50%, the middle level 20-30%, and the basic level 10-20%; while the seniority belongs to the internal general adjustment of wages, the balance and fairness of wages should be reflected, and the calculation of overtime wages should reflect the legality of wages. ^[2]

2. Pay attention to competitive salary levels

Salary levels affect the ability of companies to attract talent and their competitiveness in the industry. Therefore, if the salary level of an enterprise is lower than the market level of the same type of local enterprises and industries, and there is no corresponding measure such as stability, high benefits, convenient working conditions, attractive and upgrading training opportunities Waiting, it is easy to cause staff turnover, directly or indirectly affect the profitability of the enterprise and the realization of business development goals.

3. Pay attention to fair pay and achieve equal pay for equal work

If the salary of an enterprise is not equal to equal work, employees will think that they have been treated unfairly. As a result, employees will be negatively idle at work, reducing their efforts, and in extreme cases may cause resignation. If this is a general worker, perhaps his approach will not cause too much damage to the company, but it may damage the company's reputation. If this is an excellent employee or senior executive, his negative working attitude, or even resignation and departure, will cause inestimable losses to the company.

4. Pay attention to the reasonable division of labor among employees at the same level and the same level.

If in an enterprise, at the same level and the same level of employees, some people are too busy to breathe all day long, while some employees have nothing to do, drink tea and chat, which indicates that there is a problem in the job analysis. . Employees at the same level and level have inconsistent workload, ease of work, and job responsibilities. There must be problems in the fairness, justice, and parity of salaries. In the long run, the company's employees will surely be full, which will cause internal disunity and affect morale, and in the long run, it will cause employees to be negative, unstable, and frequently change jobs. management

5. Note that the salary levels of middle-level and senior-level employees must not differ too much.

Middle and senior management or technical personnel are indeed core talents of the enterprise, and the value they generate is indeed different, and the salary level is also different. However, if the difference between the salary of the middle-level and senior-level positions of the company and the employees at the grass-roots level is more than 8-10 times, the relationship between the employees at the grass-roots level and the management may become distant or even rigid. Middle and high-level work is also difficult to carry out.

6. Pay attention to the basis for salary adjustment, and the performance evaluation is fair and fair.

The salary adjustment of posts in the company has done a good job to motivate the morale of employees, and if not done well, it will shake the confidence of some employees. In particular, random baseless salary adjustments or unfair performance evaluations will cause employees to doubt or even be dissatisfied with the company's salary system. The salary adjustment must be based on principles, principles, and incentives.

7. Pay attention to accurate salary calculation and timely payment

The company is unable to pay the salary on time, and the salary calculation often makes mistakes, which will cause employees to question the company's credit, which may cause the company's reputation to be lost, and external investors may lose confidence in the company. Violation of labor laws and regulations is not worth the money.

8. Note that company profits are appropriately shared with employees

An enterprise is a community of interests. We create profits and share profits. Therefore, a small part of corporate profits should be shared with important posts, important employees, and employees who work hard and have good performance. At the same time, pay attention to the degree of allocation. If too little is given to employees, it may lead to dissatisfaction and affect the enthusiasm of employees; if too much is given to employees, the surplus retained by the company itself may not meet the needs of long-term development. Compared with the former, the company s losses Bigger. In general, excellent companies such as Huawei, TCL, Lenovo and other companies will give 10-20% of their profits to employees, and the incentives for stock options during the same period are not the same.